A hotel owned by Republican West Virginia Governor Jim Justice’s family has been saved from auction after the property faced loan delinquency.
The Greenbrier Hotel, which was set to go on auction August 27, prevented the sale after clearing its financial issues with Beltway Capital. The hotel told West Virginia Watch that the company made an agreement with Beltway Capital to make payments on its delinquent loan by October 24. Records show the Greenbrier Hotel Corporation owes about $9.4 million to Beltway Capital.
Greenbrier said the Justice family has already secured the money to make payments on the loan and that when the payment goes through, “all issues concerning The Greenbrier and Glade Springs are concluded.”
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Earlier, the hotel was revealed to owe millions of dollars for employees’ health insurance. The Greenbrier Council of Labor Unions said the hotel never gave back employee contributions to their health insurance that are routinely taken from their paychecks. The company was said to be behind four months on contributions, totaling roughly $2.4 million. Another $1.2 million is due soon.
“While Greenbrier was able to avoid auction, the details are still murky on exactly how this will affect some of the existing issues involving the employer, including its employees’ health insurance,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“The owning family says they have secured funding to pay off loans taken out on the property, but we still don’t have clarification as to how those funds will be distributed once paid back and if or when employees can sleep a little easier knowing their health insurance isn’t in jeopardy.”
Michael Ryan, a finance expert and founder of michaelryanmoney.com, said the hotel’s financial woes likely stem from years of cash flow mismanagement.
“I’ve seen similar scenarios play out in the hospitality industry, where seasonal fluctuations here in Florida can wreak havoc on a company’s finances if not properly managed,” Ryan told Newsweek.
“Looking ahead, the Greenbrier’s got its work cut out. They need more than just a Band-Aid solution. We’re talking major surgery here. Paying off debts is step one, but rebuilding trust? That’s the real challenge.”
Before the auction was canceled, Greenbrier’s owners warned how the hotel’s closure could impact the larger state economy.
“The threatened sale would irreparably harm Plaintiffs,” lawyers wrote in an injunction to prevent the sale earlier this week. “The Greenbrier’s reputation and business will suffer. Local jobs will be lost. And the foundation of Greenbrier County’s economy will suffer damage that will be difficult or impossible to repair.”
